BOGOTA, Feb 16 (Reuters) - Colombia's government is
expected to hike its 2023 budget by some 23 trillion Colombian
pesos ($4.71 billion) in a proposal to be sent to Congress
Friday, the country's interior minister said Thursday.
Almost all of the additional funds will come from a recently
passed tax reform Interior Minister Alfonso Prada said in a
radio interview. The reform increases duties on oil and coal,
raises income taxes on the rich and targets single-use plastics
and processed food and drinks.
The extra cash will go towards purchasing land for planned
agrarian reforms backed by President Gustavo Petro, towards
expanding the education system and kickstarting proposed health
reforms yet to be passed by Congress.
Finance Minister Jose Antonio Ocampo said Wednesday he was
committed to ensuring the government's proposals meet fiscal
code and reduce public debt.
Petro formed a strong coalition in Congress with left-,
center- and right-wing parties, which passed the tax reform in
late 2022.
An additional 20 trillion pesos will be raised every year
for the next four years due to the changes, and the funds are
aimed at backing Petro's wide-ranging social programs.
In addition to the pending health reform, Petro also hopes
to change the country's labor and pension systems, and offer
free university education to low-income students.
More than half of Colombia's population lives in poverty,
according to government data.
($1 = 4,878.24 Colombian pesos)
(Reporting by Nelson Bocanegra; Writing by Kylie Madry; Editing
by Bernadette Baum)
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